Posted May 4, 2011, 9:39 AM
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Midwest Moderator - Editor
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Join Date: Jan 2002
Location: Big Mitten
Posts: 31,745
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Not specifically Detroit-related, but more solid news that the ecnomic recovery of Michigan is beyond where it could be considered a fluke:
Quote:
Michigan manufacturing shores up nation's economy
Brian J. O'Connor / / Detroit News Finance Editor
May 4, 2011
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Among manufacturing states, Michigan is well ahead in job creation — nearly 30,000 jobs in that period. That's 40 percent more than the second-biggest gaining state — Wisconsin — and five times the jobs added in California.
Compared with June 2009, when the recession officially ended, Perry noted, the number of manufacturing positions in the United States has declined, but Michigan has added 48,500 manufacturing jobs.
Driving much of that is the rebound in auto sales, especially in Michigan-made pickups. Jenny Lin, senior U.S. economist for Ford Motor Co., says business investment is a big part of that, noting that capital spending increased 11.6 percent in the first quarter over the fourth quarter.
"That shows businesses are investing," Lin said. "They're finding they can't live with an old fleet of vehicles anymore, so business owners are renewing their fleets. That's a point of support for Ford sales going forward."
And for Michigan, as businesses, contractors and farmers pick up more pickups.
Ford's F-150 line is made in Dearborn's Rouge River plant, while Chrysler Group LLC makes the Ram 1500 and Dakota pickups in Warren. General Motors Co. assembles the heavy-duty versions of the Chevy Silverado and GMC Sierra in Flint, models selling so well now despite an increase in gas prices to nearly $4 a gallon nationwide that GM just added a third shift.
While it would take many, many extra shifts of auto workers to replace the 503,000 jobs lost in Michigan since January 2006, the manufacturing rebound underscores the heavily cyclical nature of the state's economy. With its dependence on automakers, Michigan's economy falls faster and harder when bad times send vehicle sales plummeting.
But the state also bounces back faster and higher than others after an economic downturn.
After four years of posting the worst unemployment rate in the nation — topping out at a whopping 14.5percent in December 2009 — Michigan now ranks fifth at 10.3 percent, behind Nevada, California, Florida and Rhode Island, and barely above the 10.2percent rates of Kentucky and Mississippi. Michigan's unemployment rate has fallen at twice the rate of the U.S. rate, now at 8.8 percent.
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Long way to go, but, yes, we still can make things in America, and make money on them, too.
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